Enbridge in talks with natural gas producers about Canadian LNG conduit

Royal Dutch Shell, Chevron, BG Group and Cnooc are among international energy companies proposing or considering liquefied natural gas export projects in Western Canada, including pipelines across British Columbia’s mountains to link gas supplies in shale formations to Pacific Coast facilities.

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By JEREMY van LOONBloomberg

Enbridge, Canadas largest oil transporter, is talking
with natural gas producers in British Columbia about building a
pipeline to carry supplies to the coast where they will be
exported to Asia.

"Were pretty bullish on the whole area of natural
gas, CEO Al Monaco said in a briefing with
journalists today from Toronto. What you find is a
big disconnect between North American pricing and global
pricing.

Royal Dutch Shell, Chevron, BG Group and Cnooc are among
international energy companies proposing or considering
liquefied natural gas export projects in Western Canada,
including pipelines across British Columbias mountains to
link gas supplies in shale formations to Pacific Coast facilities.

ExxonMobil, the worlds largest energy company by market
value, asked Canada in June for permission to export 30
million tpy of LNG from the nations westernmost
province of British Columbia.

Monaco didnt provide details on the talks or the names of
producers.

Japan paid an average price of $15.74/MMBtu for LNG in July,
according to data from LNG Japan. That compares with an average
of about $3.64/MMBtu for US natural gas futures traded in
New York.

Calgary-based Enbridge has C$36 billion ($35 billion) worth of
projects through 2017, Monaco said
today at an investor meeting in Toronto. The company sees
natural gas and power projects making up a larger share of
Enbridges business, he said.

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